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Cobra....
So would you have preferred a 20/25% dilution to make you more comfortable?
They clearly state that funding in MFDevCo will reduce our working capital requirements. They clearly state that 2 priority projects are progressing towards deals, which would add significant value. They clearly state that MFDevCo will be paid upfront. It's clear MFDevCo owe NUOG nearly £2m.
It's clear that £250k will last longer than 3 months, and that this will be £500k after OO.
It can be reasonably assumed that they will be looking to provide some further progress before the OO closes to build the SP back up.
So no I am not concerned by the low amount of money raise. P'sd off yes that they crashed the sp for so little money, but not concerned.
Regarding building a company..... look at a lot of companies out there... Apple for example... did they get it right first time??? you bet they didn't... its not unusual for companies to explore multiple activities until finding its first success... and its first success may not always be the one that hits it big, but it might provide a platform for them to keep working towards that. I believe GTW will be very lucrative, but I also belive it will open up opportunites with the funds and finance abilities that a signed project will bring to enable us to more easily progress other things. On of the key things is diveristy in energy. To have GTW producing supplying electricity rather than gas, along side conventional oil plays would be a really effective hedge.
Firstly Royscot.... it is not a loan.
Secondly if they are desperate for funds.... would you rather they didn't bother and left the company to go insolvent just before it's JV delivers a project? Get real... companies need funds they need working capital you can't build an oil and gas business on hot air. There have been a lot of mistakes with this placing, they should have done it much earlier, even before the AGM. The whole open offer has been dealt with incredibly poorly. But you have to separate the harsh reality of being a pre revenue aim listed business from the long term business potential and the progress they have made.
Thirdly, not linked to finalising a deal... what about the RNS the day before that maps out exactly how they are progressing to finalise 2 projects? And what about the requests at the AGM that they do not create self imposed timelines like they have in the past?
Finally, Alan is no longer part of NUOG. And its funny how people are making accusations one minute that he's pumping the share price up and in the next breath saying he's crashing it to convert debt lower? Which is it? It can't be both? Don't get me wrong I think he's made mistakes and not always had shareholders interest's at heart and the web of companies is to protect his interests, but we knew that before investing. I would say a lot of his "promises" were built on enthusiasm for delivering on his business, and that things are just taking a different route to what he expected at the time. He is not a closer, but we now have someone that would appear to be just that
Cobra... i don't claim to have greater knowledge..... as I have said recently before, i am now looking at this a lot more objectively than before. Yes we all want projects delivered today.... but the complexity of what the company are trying to achieve is just not that simple and i belive for the resources they have built something investible.
I have fallen for the "news next week" rumours in the past when there has never been any evidence of progress other than whispers. In the Marnavi RNS we have a clear plan to get the SPV, finance and 2 projects. That's more progress than we have ever had communicated before.
I see this as building a company and not delivering a project. Delivering one project will make a nice sum of money, but building a company is where the real returns will be. So if you need one project for validation, then that's fine, but i would rather see a project followed by the prospect and delivery of further projects rather than get to the first project and be wondering what's next, because were going to need a lot more than one project for this to get where most of us belive it can get to.
So with respect Cobra, like others on here I am entitled to my opinion, and simply saying it hasn't happened yet so it's not going to happen is a poor angle of attack.
Royscot - seriously what a stupid comment.....
How can you compare putting funds into a company's bank account so they can continue to build a business the same as buying a luxury holiday with benefits.... one of the most rediculous comments i've heard.
As much as the placing has really hit us hard and was really not what we expected or wanted and has caused a lot of short term damage, the prospect and advancement of projects is much further down the line than when any of us bought in at higher prices. The upside is still there, with 5.5% dilution..... what gain were you after....?? whether you thought it might be worth £20m, £50m or £100m when you invested, its 5.5% diluted, but a lot further down the line with Siemens on board, SPVs and finance being arranged.
And in terms of other prospects globally, yes they need to deliver the first project, but they have always talked about a pipeline of projects and that is key to the growth and the business model. You have seen the time it takes to bring projects to market, you have to be planning 2-3 years down the line.
We are this low because of the delays and the further damage to reputation.... but the upside is still there. I will keep adding when i can and holding. I'd be more than happy to be able to add at this price before more news so i don't care if it stays here or drops.... i know that project delivery will have a big upside and I am confident they are now positioned to move this forward.
All the great uninvested that have no shares in order to take up any open offer....
I wish you could come up with something more original than the cliches of "jam tomorrow" and "lights off"... it's so lazy and unimaginative.
Enjoy it whilst it lasts.
what are you going to do when our GTW projects are puting the lights on up and down the uk???
Reported for under paying for their service!!! :)
Paying £23.99 a month as a premium member to watch it in real time as well....
So many??? What 3 executive and 3 non executive?
Yeah maybe you could lose 1 of each.... and it remains to be seen why Alison has moved into NUOG... but that would hardly be fitting of a company with ambitions of becoming a successful upstream development and production company.
I would say he's being loose with the facts to suit his latest position on the latest of one of his many profiles.
Trust me I have more than enough reason to be annoyed with this, and there are many things I would be and have been critical of, but the money spent for the potential value being created is not one of them. People in here expecting tens or hundreds of millions of value to be created.... do you expect that without spending a few quid?
How is £500k more than 4 x £250k???
The fact is ..... we do not know where these funds have been applied....
For example.... do RMRI have employees doing work that need to be paid.... yes.
What is the total amount owed to RMRI for investment in the JV and NUOG over the years.... The amount previosuly floated about was a figure many times more than the £500k.
Companies exist and people get paid whether their efforts turn into revenue or not. That's reality and the same for pretty much any other aim company. If you don't like it start your own company. The question you have to ask yourself is are they building something investible for the money they are being paid.
The answer for me is yes.
Oilwise..... £185k is simply not correct. The answer lies in the NUOG accounts.
If you look at NUOG accounts..... Since 1 July 2017, opening cash of £654k plus placing of £2,706k = £3,360k cash, £211k remaining 31 Dec 2018, so £3.1m total cash used in the 18m period 1 July to 31 Dec 2018.
You can work out from the NUOG accounts roughly where the cash went....... seeing as people would rather use an opportunity to have a dig rather than actually work it out.... i'll give you a clue.....
Firstly dealing with MFDevCo........
The answer is in the receivables note in the annual reports..... NUOG have been providing for MFDevCo receivables over 4 years...
Go back through the accounts and you will establish that the receivable from MFDevCO is circa £1,775,000 (£790k per note in accounts, add back £985k provided for). £985,000 has been provided for in the last 2 years, to be reinstated once it is possible to be paid... for example if MFDevCo have an influx of cash from an upfront project payment. So £1.75m is the amount owed which NUOG are directly waiting on from MFDevCo.
In the period you mention, opening receivable was £753k with £595k provided for with a closing balance of £790k.... therefore £632,000 incurred on behalf of MFDevCo in the 12 month period ending June 2018. Could be many reasons the info in MFDevCo accounts is slightly different, but NUOG accounts are audited by a big 4 accountant so we can trust their accuracy.
So thats the 12 months to Jun 18 - the interims do not show the admin expense breakdown, but i might be forgiven for assuming that in the following 6 months as MFDevCo projects pick up speed they might spend at the same rate. So pro rata £632k to 18 months = £948k. So circa 1/3 of the £3.1m on MFDevCo.
OK so what of the rest....
£711k directors costs (salaries, employer NI etc for the 18m period, £474k for the year)
£309k finance costs
£343k shard repayment
£500k RMRI repayment
£328k legal and professional
£230k accounting and finance
£72k office costs
£41k travel costs
(£352k) charge back to MFDevCo double counted in above
Which leaves circa £20k unaccounted for.
It is expensive to run a plc. The shard loan is still hurting us with £200k interest and still capital to repay. The cost of running NUOG is not excessive for similar pre revenue oil companies. Value for money I will judge in another year... if they start delivering the value this is an acceptable level of spend.
The disappointing thing is the weighting of RMRI repayment when cash ias tight. But you have to accept that directors will be paid, fees will be paid.
Perhaps you may think the amount actually spent on MFDevCo is actually small, which I do, but to spend more we need to raise more as plc costs do not go away. Look at what other oil companies spend on single assets versus our spend on MFDevCo to persue multiple assets. Perhaps some of the answer is in the consortium agreements where partners are incurring their own expense
Will they always help with project design and evaluation up front before agreeing to sell something though?
Well that’s true with any stock.... if they achieve something positive it goes up if they don’t it goes down.
If you don’t believe they will go find something else you believe in. I think Siemens and marnavi think they will.
When they have MFDevCo seed finance, and project finance via the SPV..... promised to be followed by the first 2 deals with upfront payment... I am confident that there is enough cash to see them through this period which should add significant value.
I’ll give you that... they do know how to confuse investors with their lack of clarity whether that is by design or by necessity.
Tbh I wouldn’t mind another couple of months at this price to add to position when I can
Please could you let me know of any examples or precedent where an open offer has ever been done at a lower price than the associated placing with which it was attached to?? I don’t believe you will find one.
YT is correct that the open offer is yet to be announced, I believe it can follow at any subsequent date.
SBP you are quite right, the open offer will be silly when the sp is lower on open market. I don’t believe they could do an open offer at a lower price... bound by the placee strike price.... therefore it Should be seen as a pretty good indication the company need or expect this sp higher pretty soon.
Seriously kenrigas... we should be concerned that they have used the word “agreed” rather than “requested”?
look in the placing RNS... Graham comment “same terms”
New ISA year on monday.... you could transfer over 6m of these in if not already safe from the taxman. I would expect a few to take advantage of this next week.
Well, what a great bunch of people around celebrating everything that is wrong with markets and investing, and the stranglehold that brokers and market makers have over PIs and the companies they invest in.
All the research and all the upside around the value generation potential is all real, it's all conditional and always has been, but it is still there and nothing has changed. We have been very much let down with the further extension of anything material being delivered, and the negligence in the complete and utter failure that the placing price represents. There are certainly many questions that still remained unanswered.
Having said that, i still have a lot of belief in the MFDevCo model. The upside that we have all been looking for is still there. Its fallen into the hands of anyone watching or willing to buy in, but hurting long term holders. The open offer at 0.3 should give confidence that the downside risk from here is low.